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PAYE
HMRC’s Basic PAYE Tools
Tuesday, April 30th, 2013HMRC have published guidance for employers who are receiving error messages when trying to send their RTI submissions through HMRC’s Basic PAYE Tools (BPT). See ‘Further Information’ for a link to the error messages and HMRC’s guidance. The next piece of information is for RTI Pilot employers that were planning to use BPT to submit [...]
HMRC’s Basic PAYE Tools Upgrade (2012/13)
Tuesday, February 26th, 2013HMRC have advised that the latest update of the Basic PAYE Tools (BPT) has been released. BPT can be used by employers with nine or fewer employees. This update will allow 2012/13 non-RTI employers to submit their Employer Annual returns, forms P14 and P35. Comment Employers that are in the RTI Pilot should carry on [...]
PAYE Settlement Agreement (PSA) Payments
Tuesday, October 16th, 2012A PSA is an agreement with HMRC where the employer meets the PAYE tax and National Insurance Contributions (NICs) liabilities on expenses and benefits on behalf of the employee. This will be in the instances where the expense or benefit is minor, irregular or where it is impractical to operate PAYE. In their latest informal [...]
FAQ – How Many Years do we have to keep Payroll Records For?
Tuesday, August 28th, 2012When requested by HMRC, Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to ‘produce’ their ‘PAYE records’, other than those that they have already been sent, at a ‘prescribed place’. This is for a period of not less than three years following the tax year to which they relate. [...]
The Simplified PAYE Deductions Scheme (SPDS)
Thursday, August 23rd, 2012The Simplified PAYE Deductions Scheme (SPDS) is frequently used by care and support employers to meet their PAYE obligations. This is also used by employers who have personal and domestic employees, e.g. nannies, gardeners, cooks etc. HMRC issue the SPDS pack annually, which contains simplified tax and NICs tables plus all of the necessary guidance to operate [...]
PAYE at the Crossroads Report
Sunday, July 29th, 2012The All-Party Parliamentary Taxation Group (APPTG) is one of a number of all-party groups formed by members of both the Upper and Lower Houses of Parliament. These meet regularly to discuss and highlight issues of concern. Whilst they do not have a place in law-making in the UK, they have an influential role to play [...]
How Many Years do we have to keep our Payroll Records for?
Thursday, May 3rd, 2012When requested by HMRC, Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to ‘produce’ their ‘PAYE records’, other than those that they have already been sent, at a ‘prescribed place’. This is for a period of not less than three years following the tax year to which they relate. [...]
BASIC PAYE Tools 2012/13
Saturday, February 25th, 2012Last week we mentioned that HMRC had updated their PAYE Basic Tools package for the above tax year. A reader made the very valid point that, whilst any employer can use these tools, they are most useful for employers with up to and including 9 employees as at 05 April, including leavers. If the employer [...]
Cycle to Work Days Provision of Meals – Repeal of Tax and Class 1A NICs Relief
Sunday, December 11th, 2011In normal circumstances, the provision of a meal by employer to employee at the end of home to work travel would give rise to a taxable benefit. However, where the employer provides this on a designated ‘cycle to work’ day, these can be provided without any P11D reporting requirements. This was intended to encourage take-up [...]
Income Tax Rates, Rate Limits and Personal Allowances for 2012/13
Saturday, December 10th, 2011The Income Tax Act 2007 is the primary piece of legislation which governs the tax that is paid under Pay As You Earn. The Act allows for the Basic Rate limit and personal allowances for people under 65 to increase by indexation each year (the Retail Price Index rate). As income tax is still a [...]
PAYE Pooling
Saturday, October 29th, 2011Last week, HMRC published the above discussion document as part of Government’s commitment to improving and simplifying the PAYE system and the associated burdens for employers. At present, most employers will have a single PAYE reference, though an employer can elect to have more than one. For example, a large employer may be the overall [...]
Financial security where payment for PAYE tax and NICS at risk
Monday, October 10th, 2011HMRC’s plans to ask certain employers to pay a security where there is a risk of deliberate non-payment of PAYE will be introduced from April 2012. As announced by the Coalition government at the time of the June 2010 Budget, section 85 of the Finance Act 2011 includes a measure that allows HMRC to make [...]
Abolition of contracting-out on a defined contribution basis
Sunday, October 2nd, 2011HMRC’s latest PAYE Update reminds payroll software developers and employers of what they need to do to prepare for abolition of defined contribution contracting-out from April 2012. It will be each employer’s responsibility in April 2012 to allocate the correct NI Table Letter to those employees affected by the withdrawal of contracting-out for all pension [...]
Consultation on government’s “digital by default” plans
Monday, August 15th, 2011HMRC is consulting on proposals to make online registration for income tax and corporation tax the norm for new businesses. The government’s developing policy of “digital by default” is intended to change the approach to the design of public services so that, other than in inappropriate situations, the normal method of accessing those services would [...]
Basic PAYE Tools updated with SSP rate corrections
Saturday, July 9th, 2011E14 booklet and SSP calculator have been updated to give correct rounded rates. Two weeks ago we reported rounding errors in the E14 Employer Helpbook for SSP and in the Basic PAYE Tools. These have now been corrected. A new “pdf” version of the booklet can be downloaded from HMRC’s forms and publications page and [...]
Latest update to PAYE Desktop Viewer
Sunday, July 3rd, 2011Users need to install the latest update to continue to read HMRC notices The PAYE Desktop Viewer (PDV) is an application provided by HMRC for viewing, searching and sorting online PAYE coding notices, and other notifications and reminders. To read and handle the latest notices, users must download and install version 1.5 of PDV. Full [...]
Corrections to CWG2 Employee Further Guide to PAYE and NICs
Thursday, May 26th, 2011A number of amendments have been made to the CWG2 guidance for employers. HMRC has announced that an updated version of booklet CWG2 Employer Further Guide to PAYE and NICs is available to download. It shows “03/11” on the back cover. For employers who have obtained printed copies of the CWG2 from the Employer Orderline, [...]
PAYE tolerances for 2010/11
Monday, April 18th, 2011The following is an extract from the latest weekly informal update (dated 8 April) from HMRC to employer representatives. A tolerance has been used since the introduction of PAYE to accommodate the rounding up and down that automatically happens when the tax tables are used to calculate weekly/monthly tax deductions. We have applied a tolerance [...]
Basic PAYE Tools updated with tax and NICs calculators
Monday, April 11th, 2011The latest update to Basic PAYE Tools includes missing calculators. The annual Employer CD-ROM, which has been replaced by the Basic PAYE Tools for 2011/12, included a basis PAYE tax calculator and an NICs calculator. Both were missing from the Tools but have now been included in the latest update. If you have set your [...]
Centralising PAYE work in Newcastle
Friday, April 1st, 2011From April all employer work moves from local HMRC offices to one national location in Newcastle. The following is an extract from the latest weekly informal update (dated 25 March) from HMRC to employer representatives. From 1 April 2011 all employer work will be dealt with by the National Insurance Contributions and Employer Office (NIC&EO), [...]
